New Real Estate projects under development ▶ Former Athens airport development in Helliniko- The biggest Real Estate project in Europe with an estimated €8 billion

investment budget ▶ NBG PANGAEA REIC is bringing to Greece (and the Mediterranean) the first Moxy by Marriott, a new and trendy hotel

brand introduced by Marriott International ▶ Development of mega-logistics centers in Thriassio and Thessaloniki (Str. Gonou), and similar projects in other areas ▶ Grivalia Properties - Dimand Real Estate JV is redeveloping the old Papastratos tobacco warehhouses in Piraeus into a

11,000 sqm office project with an investment budget in excess of €100 million ▶ Privatization of regional ports and marinas underway ▶ New concessions for land plots available for tourism development

Greek Real Εstate Μarket Οutlook

March 2019

LET GREECE INSPIRE YOU!Take the next step.Invest in prosperous business ventures.

Greek infrastructure development as Real Estate facilitator ▶ According to a PWC report, between 2014 and 2017, 25 infrastructure projects were

completed with a total investment of €2 billion. ▶ 75 infrastructure projects are in progress or in the pipeline, amounting to €18.7 billion,

with 36% of them referring to rail and motorway projects ▶ Kasteli (Crete) airport Construction and management of a new airport on Crete in Kasteli,

Heraklion, for a period of 35 years, with the total cost for the project estimated at €1.5 billion and an Indian-Greek consortium bidding successfully for the tender

▶ Piraeus and Thessaloniki Port privatisations and new investment plans under deployment, Thriasio railway line upgrade, together with other major railway projects that are also underway, will enhance freight connections with neighboring countries

▶ Privatization of 14 regional airports, with German FRAPORT winning the bid for the 40-year concession to operate, manage, develop and maintain the facilities, with an expected total investment in excess of €3 billion

Real Estate Completed projects + Recent FDI Deals ▶ Porto Heli Collection: A 347 hectare exclusive development in Argolida is reshaping the industry in this region ▶ Costa Navarino: set to invest €250 mil. in the creation of a second tourism accommodation enterprise at

Navarino Bay, by expanding to nearby Pylos with the construction of a five-star hotel, furnished villas with a 900-bed capacity and an 18-hole golf course among others.

▶ NBG PANGAEA REIC has invested ca €700 million in the last four years of which ca €500 million in Greece ▶ Brevan Howard Asset Management LLP creates two new $500 million funds to invest exclusively in Greek

assets. ▶ McArthur Glen opened its first Mall in Greece ▶ TEMES SA and D-Marine Investments Holding BV (Dogus), acquired Athens Hilton hotel building ▶ Grivalia Hospitality acquired 80% of Nafsika SA, lessee of Asteria Glyfadas ▶ Russian billionaire Dmitry Rybolovlev, is implementing a major makeover of the historic island of Skorpios ▶ Jermyn Street Real Estate Fund, acquired Astir Palace Vouliagmenis, while Four Seasons has announced,

plans to transform the legendary Astir Palace into a Four Seasons Hotel ▶ US Oaktree Capital is investing in Ikos Resorts together with the Greek hotel company Sani S.A. and is

undertaking tourism investments throughout Greece with a €250 million investment plan ▶ Tourism giants TUI Group and Thomas Cook are investing in new hotels in Greece, expanding their presence.

The rise of the Greek REICs (Real Estate Investment Companies) ▶ Law 4141/2013 reformed the legal framework of Real Estate Investment Companies (REICs), expanding their investment options (they

can also invest in residential property, tourist property, property under construction and land with building permit), with strong players demonstrating an international investment appeal.

▶ Trastor, a subsidiary of Piraeus Bank, and a company where US Varde Partners acquired a 33,8% share in 2016 ▶ NBG PANGAEA REIC, subsidiary of National Bank of Greece. In 2013 INVEL Real Estate (Netherlands) II BV acquired a 66% stake in the

company. Subsequently, PANGAEA also acquired MIG Real Estate, a smaller listed REIC ▶ Eurobank Properties, now Grivalia, has been acquired by Canadian Fairfax Financial ▶ Intercontinental International REIC (ICI), affiliated with US Inter Continental Real Estate & Development Corporation, was established

in Greece and invested in commercial assets ▶ New players have joined or are expected to join the existing players: BriQ Properties, Ble Kedros, etc

www.enterprisegreece.gov.gr

Hospitality ▶ Tourism is one of the main pillars of the Greek economy. The hospitality sector is one of the most dynamic investment sectors in Greece,

offering high returns to potential investors. Athens offers one of the highest hotel yields in Europe (9%) compared to major European capitals such as London (5.5%), Paris (5.5%), Rome (6.25%) and Madrid (6.25%)

▶ Golden Visa Program offers a permanent residence permit (renewable every 5 years) to non-EU citizens when they buy property or invest in any sector of the Greek economy. Minimum amount of invested capital €250,000. Residence permit may extend to family members. Permit holders have invested more than €1 billion in Greek Real Estate under the program.

▶ Law 4002/2011 permitted investments in integrated tourist resorts, which include tourist residences that could be sold or leased and can comprise 30-60% of the total built area, depending on the building coefficient used

▶ The unprecedented increase in tourism flows has led to the development of a large number of combined tourist resort projects, which include the construction of holiday homes, increasing and renewing the existing stock with over 3,000 new properties over the next 5 years

▶ Apart from Greece ’s traditionall tourism markets (UK, Italy, France, Germany, and Scandinavia) there has been keen interest recently by investors from the US, Russia, the Middle East and Turkey.

Logistics ▶ Greece stands at the crossroads of three continents offering high potential to logistics development ▶ Average yields for quality properties in the major logistics areas of Greater Athens and Thessaloniki, are at least as high as 10% ▶ Occupancy rates for Grade A logistics properties are as high as 95% ▶ Management concessions of Piraeus port to COSCO, Thessaloniki port to the Deutsche Invest- Terminal Link-Belterrra consortium, and

TRAINOSE to Ferrovie Delo Stato, create new business opportunities ▶ Development of new Logistics Centers in Thessaloniki (Str. Gonou) and Athens (Thriasio), as well 3/4 Party Logistics Parks throughout

Greece. ▶ Small to medium size warehouses (i.e. 500-2,500 sqm) are increasingly sought after and considered more attractive

Retail ▶ High street shops and commercial centers that stood strong during the previous years, have now started to recover ▶ Athens center exhibits signs of recovery, boosted by increased tourist arrivals, after a considerable period

of negative growth in prices ▶ High quality retail space of various sizes, including shopping centers have been in the spotlight due to

increased demand from fashion and food and beverage retailers ▶ Gradual improvement in the Thessaloniki high street market with increased take up

leading to lower vacancy rates and higher rental prices

Offices ▶ Lack of new development projects resulted in the take up of existing quality stock ▶ Vacancy rates in the top three office locations in Athens have decreased over the last

two years for both Grade A and B buildings, exhibiting an increasing take-up trend ▶ Rental levels have stabilized and are expected to increase following

the general economic recovery

Located at the crossroads for trade, transport and energy distribution between Asia, Africa and Europe. Greece combines a geostrategic location with a deep cultural heritage, a mild Mediterranean climate and unparalleled natural beauty. Offering competitive costs and a skilled and well-educated workforce, Greece is an ideal place for international businesses in a globalized economy.

Greece, an attractive destination for investment

Economyoverview

Real Estate Overview and

subsectors

▶ Net Foreign Direct Investment inflows during 2017 reached €3.2 billion vs. €2.5 billion during 2016, an increase of 28%, following a 2nd consecutive year of increased flows, while data recently released by the Bank of Greece for 2018 measured annual FDI inflows at €3.6 billion, showing a 13.8% increase compared to 2017.

▶ M&A transactions increased significantly in number in 2018 reaching 51 while the total deal value rose by €1.9 bn compared to 2017, 100% increase, mainly because of large deals in Shipping, Energy and Financial Services sectors.Within 2019, M&As that have already been agreed and will be completed could exceed € 2bn, in addition to around € 2.6bn from privatisations, (PWC Deals in Greece 2019).

▶ For a 5th year in a row, Greece broke its all time record in tourist arrivals attracting almost 30 million tourists in 2017 ▶ Greece is becoming a major transport hub for European markets following the successful privatization of ports,

airports and railways ▶ The direct contribution of travel and tourism stood at €14.6 billion in 2017, expected to rise by 5.6% to €15.1 billion in

2018 (WTTC 2018 Annual Research report), while its total contribution is projected to increase by 5.3% to €36.9 billion in 2018, corresponding to a 20.2% share of GDP

▶ Real Estate has long been a pillar of growth for the Greek economy ▶ Lucrative investment opportunities are emerging as the sector goes through restructuring. Athens ranks in Top-5

EMEA markets for Office, Retail and Logistics rental yields (NAI Global 2017). ▶ Greek Real Estate assets are very competitively priced, offering the potential for a strong recovery and double-digit

returns in the medium-term especially compared with other European countries that went through an adjustment program and exhibit economic similar macro performance

• set to invest €250 mil. in the creation of a second tourism accommodation enterprise at Navarino Bay, by expanding to nearby Pylos with the construction of a five-star hotel, furnished villas with a 900-bed capacity and an 18-hole golf course among others.

• set to invest €250 mil. in the creation of a second tourism accommodation enterprise at Navarino Bay, by expanding to nearby Pylos with the construction of a five-star hotel, furnished villas with a 900-bed capacity and an 18-hole golf course among others.

• Net Foreign Direct Investments (FDI) increased dramatically during the last two years: at 2,8 bn Euro in 2016 and at 3.6 bn Euro in 2017, a 30% increase y-o-y, with FDI inflows between January-May 2018 reaching €1.728 million, showing an 8.6% increase compared to the same period in 2017, when inflows stood at € 1.590 million.

• Estimated total value of M&A deals in 2017 came to €1.4 billion compared to €1.1 billion in 2016, marking a 30% increase within the last year, with 65% of the deals made by strategic investors (M&A Barometer 2017, EY)

• For a 5th year in a row, Greece broke its all time record in tourist arrivals attracting almost 30 million tourists in 2017

• Greece is becoming a major transport hub for European markets following the successful privatization of ports, airports and railways

• EUROGROUP approved (June 2018) a 10-year deferral and maturity extension on a large proportion of the Greek debt, as well as €15 billion in new credit, signaling debt viability and easing access to capital markets

Greece an attractive

destination for investment

Economy overview

Located at the crossroads for trade, transport and energy distribution between Asia, Africa and Europe. Greece combines a geostrategic location with a deep cultural heritage, a mild Mediterranean climate and unparalleled natural beauty. Offering competitive costs and a skilled and well-educated workforce, Greece is an ideal place for international businesses in a globalized economy.

• Real Estate has long been a pillar of growth for the Greek economy

• Lucrative investment opportunities are emerging as the sector goes through restructuring. Athens ranks in Top-5 EMEA markets for Office, Retail and Logistics rental yields (NAI Global 2017).

Real EstateOverview and

subsectors

• Tourism is one of the main pillars of the Greek economy. The hospitality sector is one of the most dynamic investment sectors in Greece, offering high returns to potential inves-tors. Athens offers one of the highest hotel yields in Europe (9%) compared to major European capitals such as London (5.5%), Paris (5.5%), Rome (6.25%) and Madrid (6.25%)

• Golden Visa Program offers a permanent residence permit (renewable every 5 years) to non-EU citizens when they buy property or invest in any sector of the Greek economy. Minimum amount of invested capital €250,000. Residence permit may extend to family members. More than 8,900 residence permits have been issued to date, mostly to Chinese, Russian and Arab investors and their family members. Permit holders have invested more than €1 billion in Greek Real Estate under the program.

• Law 4002/2011 permitted investments in integrated tourist resorts, which include tourist residences that could be sold or leased and can comprise 30-60% of the total built area, depending on the building coefficient used

• The unprecedented increase in tourism flows has led to the development of a large number of combined tourist resort projects, which include the construction of holiday homes, increasing and renewing the existing stock with over 3,000 new properties over the next 5 years

• Apart from Greece ’s traditionall tourism markets (UK, Italy, France, Germany, and Scandinavia) there has been keen interest recently by investors from the US, Russia, the Middle East and Turkey.

Hospitality Logistics

Retail Offices

• Greece stands at the crossroads of three continents offering high potential to logistics development

• Average yields for quality properties in the major logistics areas of Greater Athens and Thessaloniki, are at least as high as 10%

• Occupancy rates for Grade A logistics properties are as high as 95%

• Management concessions of Piraeus port to COSCO, Thessaloniki port to the Deutsche Invest- Terminal Link-Belterrra consortium, and TRAINOSE to Ferrovie Delo Stato, create new business opportunities

• Development of new Logistics Centers in Thessaloniki (Str. Gonou) and in Athens (Thriasio) are in the pipeline

• Small to medium size warehouses (i.e. 500-2,500 sqm) are increasingly sought after and considered more attractive

• High street shops and commercial centers that stood strong during the previous years, have now started to recover

• Athens center exhibits signs of recovery, boosted by increased tourist arrivals, after a considerable period of negative growth in prices

• High quality retail space of various sizes, including shopping centers have been in the spotlight due to increased demand from fashion and food and beverage retailers

• Gradual improvement in the Thessaloniki high street market with increased take up leading to lower vacancy rates and higher rental prices

• Lack of new development projects resulted in the take up of existing quality stock

• Vacancy rates in the top three office locations in Athens have decreased over the last two years for both Grade A and B buildings, exhibiting an increasing take-up trend

• Rental levels have stabilized and are expected to increase following the general economic recovery

• Greek Real Estate assets are very competitively priced, offering the potential for a strong recovery and double-digit returns in the medium-term especially compared with other European countries that went through an adjustment program and exhibit economic similar macro performance

• New multimillion euro investment deals from international investors (US, Canada, UAE, Russia, Germany, Israel, Turkey, Argentina, etc) are driving momentum in the property sector

• State-owned Real Estate assets undergoing privatization and new legislation for Real Estate development provide rewarding investment opportunities

• Favorable legislation for Real Estate Investment Companies